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We work in the hopes of reaping the fruits of our labor one day. That day is when we retire and get to do what we have aspired for the past 40 years or so. That day is when we can finally sit down comfortably in our living room and list down the activities that we want to engage in apart from our long term care plans, of course. Perhaps, getting a one-week vacation in Europe or island hopping in Asia could be one of your plans. Spending long hours with your kids and grandchildren every day and taking morning strolls at the neighborhood park have also been part of your dream which you can realize now. You can do practically anything and everything that you wish for as long as you have organized your future beforehand. Aside from the travels, mornings at the park and barbecue lunches with the family, your future plan should definitely include long term health care, too. The cost of care these days is unthinkable. According to a data presented by top providers of long term care insurance policies, the median annual rate of a private nursing home room is $77,750 and the average stay of an elderly in such facility is two and a half years. According to a survey, the cost of LTC facilities increase at 5% annually so if this is the case those who are expecting to receive care 20 years from now should prepare at least $310,000 for a year’s stay in a nursing facility. There’s no doubt that the speedy increase in LTC rates is posing a threat to people’s finances, especially those of individuals who are getting close to retirement. In the past, if you have a total of $500,000 in the bank upon retirement you’ll be all right but nowadays it takes to have over a million in assets in order to survive the cost of LTC. However inevitable the speedup of LTC costs, financial advisers and insurance experts say an easy way out from this predicament is by coming up with concrete long term care plans. It’s actually the cost of LTC services that drains people’s wallets. While you’re working and earning a chunk of cash every month, invest in an LTC insurance policy which will cover your health care and custodial care expenses. Among the policies that are offered in the market, the partnership LTCI program is constantly played up by insurance companies in various states, as this insurance product offers more than LTC coverage. It also allows a policyholder to protect his assets in case he decides to acquire Medicaid assistance in the future after having used up the benefits of his partnership LTCI policy. Under the law, only people with a monthly wage that is below the poverty level can be eligible for Medicaid. However, since the partnership LTCI program was implemented people have found better options for their long term care plans. Partnership programs carry the dollar-to-dollar asset protection and thus you get to protect your assets with a total amount that is equivalent to your policy’s maximum benefit should you apply for Medicaid. To learn more about the partnership program, consult the Department of Insurance in your state of residence. Get tips on how to minimize your long term care insurance premiums. For more details on the provisions of CLASS Act, please visit CompleteLongTermCare.com.
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